China retaliates against US tariffs

China will raise tariffs on imports of US LNG and other energy commodities – except crude – to 25pc from 10pc on 1 June, in retaliation for US president Donald Trump's escalation of the trade war between the two countries.

The US has increased tariff rates on $200bn/yr of imports from China to 25pc effective 10 May, but set an exception for products shipped before that date and arriving before 1 June. The Chinese countermeasures match 1 June as the effective date.

Trump's decision to raise tariffs will lead to "escalation of Sino-US economic and trade frictions, contrary to the consensus between China and the US on resolving trade differences through consultations, jeopardizing the interests of both sides and not meeting the general expectations of the international community," China's commerce ministry said today.

Existing US tariffs affect $250bn of the $539bn/yr the US imports from China, including many chemical and industrial products. But the latest round of US tariffs and Chinese countermeasures is not going to be the last. The US today will commence the administrative process for imposing tariffs on the entirety of imports of goods from China, US trade representative's office said on 10 May.